Average profit is maximized when:
A) average profit is equal to marginal profit.
B) total profit is maximized.
C) marginal profit is increasing.
D) marginal profit is maximized.
E) marginal profit is minimized.

Question

Quizplus · Accepted Answer

Average profit is maximized when it is equal to marginal profit, as this indicates that the additional profit from producing one more unit is equal to the average profit per unit, optimizing the average.

Average Profit Is Maximized When